Bcom Additional paper, BUSINESS PRACTICE QUESTION BANK WITH ANSWERS

Note: Answers are shown in BOLD letters

1. The Indian Companies Act came into existence in:

(a)1981 (b)1956

(c)1975 (d)1991

2 Entrepreneurship is related to:

(a)a technique (b)an attitude

(c)a process (d)a person

3 Factors of production are also known as:

(a)Outputs (b) Inputs

(c)Goods (d) Services

4 The cheapest source of finance is:

(a)Debentures (b) Equity share capital

(c)Preference share (d)retained earnings

5 Which of the following does not characterize business activity?

(a)an economic activity (b) sale of goods and services

(c) Salary or wage (d) presence of risk

6 In a cooperative society, the voting principle is:

(a)One person one vote (b) There is no voting

(c)One share one vote (d) multiple votes per person

7 Engineering and business schools are monitored and accredited by the:

(a)ICSSR (b) AICTE

(c)UGC (d) AIIM

8 The minimum number of members in a public company is:

(a)Two (b) Five

(c)Seven (d) Twenty

9 ‘Agmark’ is a symbol of purity and quality of

(a)Medicines (b) Cosmetics

(c)Food products (d) Woolens

10 World bank is also known as:

(a)IBRD (b) IMF

(c)IDA (d) none of these

11 SEZ stands for:

(a)South East Zone (b) Special Economic Zone

(c) Special Electronic Zone (d) none of these

12 ASEAN stands for:

(a)Asian and south-East Asian Nations (b) Association of South - East Asian Nations

(c) Association of South and East Asian Nations (d) none of these

13 How much percentage of the total time deposits of the banks is locked as Statutory Liquidity

Reserve (SLR)?

(a)10% (b)6%

(c)25% (d)20%

14. As per the target fixed under PM’s Employment Generation Programme how many

employments are generated in Small and Medium sectors by the year 2011-12?

(a)10 lakhs (b)20 lakhs

(c) 27 lakhs (d) 37 lakhs

15. Which of the following Organizations is not associated with the financial, banking sector in

India?

(a)NABARD (b)BSE

(c)ISRO (d) ECGC

16. Which one of the following is the target fixed for fiscal deficit in the year 2010-2011?

(a)3.5% (b)4.0%

(c) 5.5% (d) 5.0%

17. Which of the following countries became the third largest producer of steel in the world in

2009?

(a)China (b) India

(c) USA (d) Japan

18. What is the minimum number of members required for the registration of a cooperative

Society?

(a)Five (b) Eight

(c) Ten (d) Twenty

19. What is the maximum number of members for a cooperative Society?

(a)20 (b)25

(c)40 (d) none of these

20. What is the maximum number of partners permissible for a firm conducting general

Business?

(a) Ten (b)Twenty

(c) Seven (d) Fifty

21. What is the maximum number of partners permissible for a firm conducting banking

Business?

(a)Ten (b) Twenty

(c) Seven (d) Fifty

22. The Indian partnership Act came in to existence in:

a)1931 (b)1956

(c)1957 (d)1932

23. The manager of Hindu Undivided Family is called the--------------

(a)Coparcener (b)Karta

(c)Member (d)Senior

24. IIP Stands for

(a)Indian Index for Production (b)Indian Industrial Production

(c)Index of Industrial Production (d)None of these

25.’Prima’ is a newly launched

(a)Car (b) tractor

(c) Truck (d)motor-cycle.

26. Currently, the shares of agriculture, industry and services sectors in India’s Gross Domestic

Product(GDP) are about:

(a)51:34:15 respectively (b)35:40:25 respectively

(c)18:28:54 respectively (d)None of these

27.Kudumbashree project for poverty reduction was launched on

(a)17th may 1998 (b) 2nd October 1998

(c)15th august 1998 (d)1st Jan 1998

28 The term ‘invisible trade’ is used in connection with:

(a)Illegal trade (b)Trade in services

(c)Trade in endangered species (d)None of these

29. Wall street, which is associated with stock market, is located in:

( a)Kolkata (b) Mumbai

(c)London (d) New York

30. Which is the largest Oil exporting country in the world?

( a)UAE (b)Saudi Arabia

(c)Iran (d)Iraq

31. A part of profits of the company that is used as capital is known as

(a)retained earnings (b)public deposits

(c)Shares (d) debentures

32. Long term loans from the public is called.

(a) retained earnings)r (b)public deposits

(c)Shares (d)debentures

33. Requirements of working capital depends upon:

(a)Size of the business (b) credit policy adopted

(c) Operating cycle involved (d)all the above

34. The Securities and Exchange Board of India was given statutory powers as on

(a)Jan 30,1991 (b)Jan.30,1992

(c)Oct.2,1991 (d)May 31,1992

35. Local Area Banks (LABs) shall be registered as:

(a)Public Limited Companies under the companies Act 1956

(b)Private Limited Companies under the RBI Act

(c) Private Limited Companies under Banking Regulation Act, 1949

(d)Section 25 Companies under the Companies Act 1956

36. Who fixes the share capital of State Financial Corporations?

(a)RBI (b) Respective State Governments

(c)Commerce Ministry of the GOI (d)Ministry of Finance of the GOI

37. LAF stands for

(a) Lending Account Facility (b)Lending and follow-up

(c)Linearly Adjustable Facility (d)Liquidity Adjustment Facility

38 Sivasamudram Hydro Electric Project is situated in

(a)Kerala (b)Tamil Nadu

(c) Karnataka (d) Orissa

39.Which of the Muslim rulers introduced the price control system for the first time in India?

(a)Qutb-ud-Din Aibak (b)Sher Shah suri

(c)Ala-ud-Din Khalji (d)Babar

40.A government company refers to one in which:

(a)The entire share capital is held by the central and/or state government.

(b)50% of the capital is held by the central government and the remaining 50% by one

or more state governments.

(c)At least 51% of the paid-up capital is held by the central and/or state governments.

(d)At least 49% of the paid-up capital is held by the central and/or state governments

41. The maximum number of members in a private limited company is-------------

(a)50 (b)20 (c) 7 (d) 10

42.In Network analysis a situation where an activity other than starting or ending which do not

have a successor event is called:-

(a)Float (b) Dangling (c) Dummy (d) Looping

43. What is PERT?

(a)Program Evaluation and Review Theory.

(b) Program Evaluation and Review Technique.

(c) Project Evaluation and Review Technique

(d) Progress Evaluation and Review Technique

44.An unbroken chain of activity arrows in a network which connects the initial event to some

Other event is called:-

(a) A node(b)A dummy activity

(c) A project (d)A path

45.Identify a state where the Hindu Undivided family belongs to the Dayabhaga School:-

(a)Bengal (b) Maharashtra

(c) Bihar (d) Uttar Pradesh

46. Which one of the following is not a banking system?

(a)Brand Banking (b) Unit Banking

(c) Chain Banking (d) Group Banking

47. Lead Bank system was introduced by:-

(a)Commercial banks (b) Nationalized banks

(c)RBI (d) Scheduled banks

48.What is D.F.H.I ?

(a)Demand and Finance House of India Limited

(b)Deposit and Finance House of India Limited

(c)Development and Financial Housing Institution

(d)Discount and Finance House of India Limited

49. Critical Path Method is a:-

(a)Planning Technique (b)Organizing Technique

(c)Budgeting Technique (d) Control Technique

50.The primary goal of a nonprofit enterprise is.

(a)Earning profit

(b) Distributing profit to shareholders

(c)Establishing religious institutions

(d)Welfare of the society

51.Disinvestment of is used to denote:

(a) Liberalization (b)Globalization

(c)Privatization (d)Industrialization

52.FDI means

(a) Financial Development of India

(b)Foreign Direct Investment

(c)Finance Department of India

(d)Futures and Derivatives in India

53.The new economic policy of India(L.P.G) was announced in-----------------

(a)1990 (b)1991

(c) 2000 (d) 2001

54.A s per the instructions given by the RBI, now all banks are required to provide which of

the

following in all its branches mandatorily?

(a)Note sorting machines

(b)Special Counters for Senior Citizen

(c) Special Counters for Women Customers

(d)Service sector

55. Which of the following countries is helping India in the construction of Nuclear power

stations across the country in a big way?

(a)USA (b)Germany

(c)Brazil (d)Iran

56. Which of the following countries is at the top of the list of nations having maximum quantity

of Gold with them?

(a)India (b)China

(c)Russia (d)USA

57.Which of the following terms is not used in the field of Banking& Finance?

a)Overdraft (b)Base Line

c)RTGS (d)GBC

58. As per the new Foreign Trade Policy the annual growth of growth of export should increase

by which of the following levels by 2011?

(a)10% ( b)15%

(c)25% (d)12%

59. The concept of sustainable development relates to

(a)Consumption level

(b)Exhaustible resources

(c)social equity

(d)Integrational equity

60. The major thrust of Jawahar Rozgar Yojna(JRY) is on

a) Removal of poverty among the Scheduled Castes in rural areas

(b) Creating additional wage employment opportunities in rural areas.

(c)Creating employment opportunities in urban areas

(d)Providing training to rural youth for self-employment.

61. The Government of India has set up a special group to devise a long term pricing formula, so

that it can cope up with the prevailing global volatility in the prices of which of the following

Commodities?

(a)sugar (b)paddy

(c)Crude oil &Petroleum (d)Gold

62. Which of the following is not included in the core sectors of Indian economy?

(a) Transport (b)Steel

(c)Coal (d)Electricity

63. Many times we see a term ‘PPP’ in financial newspapers. One full form of it is “private public

partnership”. What is another version of the same also used in the financial world?

(a)Perfect, preferred &protected. (b)Point to Point Protocol

(c)Power point Presentation (d)Purchasing Power Parity

64. Which of the following is one of the most successful programmes under Bharath Nirman ?

(a)Pradhan Mantri Gram Sadak Yojana (b)Watershed Development Scheme

(c)Indira Awas Yojana (d)Rajiv Gandhi Grameen Vidyutikaran Yojana

65 What is/are the major roles of “Banking Ombudsman”?

A)Banking Ombudsman is a quasi judicial authority having powers to summon the banks

and the customers both in case of dispute.

B)The banking Ombudsmen are appointed by the president of India and are retired

judges of the High or Supreme Courts.

C)The decisions/Judgments given by the Banking Ombudsman cannot be taken to any

court of justice as their decisions are last in case of bank related problems/disputes.

(a)Only A (b) Only B

(c) Only C (d) All A,B and C

66.Which of the following pairs of countries are the signatories of a Gas Pipeline Deal christened

as peace pipeline?

(a)Iran-Iraq (b)Iraq-UAE

(c)Kuwait-Iran (d)Pakistan-India

67. Which of the following countries is at the top of the “World Green Index” complied by the

America’s “National Geographic Society” and also through an international polling from

‘Global scan’?

(a)South Africa (b)China

(c)USA (d)India

68.The letter ‘D’ stands for which of the following in the abbreviated name OECD?(Organisation

of Economic Cooperation and----------)

(a)Defense (b)Dominance

(c)Development (d)Direction

69. Which of the following is the Bank Rate at present?

(a)6% (b)6.25%

(c)5% (d)5.25%

70. Which of the following is the Repo Rate at present?

(a)3.25% (b)6.25%

(c)5% (d)6%, answer 6.5%

71. Which of the following is the Reverse Repo Rate at present?

(a)5.25% (b)6.25% (c)6% (d)25%, answer 5.5%

72. Which of the following is the Cash Reserve Ratio(CRR) at present?

(a)3.25% (b)6.25%

(c)25% (d)6.0%

73. Which of the following is the Prime Lending Rate at present?

(a)10.25-10.5% (b)11.25-11.5%

(c)12.25-12.5% (d)13.25-13.5%

74. Global warming is expected to result in:-

(a) Increase in level of sea (b)change in crop pattern

(c) Change in coast line (d)All of the above

75.Who is the Ex-officio Chairman of the Planning Commission ?

(a)Minister for planning & Development (b) Finance minister

(c)Prime minister (d) Minister for Rural &Community Development

76. Which one of the following would not constitute an economic activity?

(a)A teacher teaching students in his class

(b)A teacher teaching students under Sarva Shiksha Abhiyan

(c) A teacher providing consultancy services from his residence

(d)A teacher teaching his own daughter at home.

77. As per the Industrial Development Report 2009 India’s rank in Industrial Development was 54

on the

Development Index. Which of the following organizations/agencies complies Industrial

Development

Index of the world?

(a)International Labour Organization

(b)United Nations’ Industrial Development Organization

(c)World Bank

(d)World Trade Organization

78.What is the minimum support price announced by the Government of India for Rabi crop of

wheat?

a)Rs 900/quintal

b)Rs 950/quintal

c)Rs 1080/quintal

d)Rs 1000/quintal

79.As per news reports MTNL recently launched its “3G Services” and became the first telecom

operator

to launch the same in India. What is the full form of ‘G’ IN 3G?

(a)Global (b) Generation

(c) Growth (d) Gravity

80. Service Tax was introduced in India for the first time in the year.

(a)1990-91 (b)1991-92

(c)1994-95 (d)2000-01

81.The first Indian state Government to start Lottery

(a)Goa (b)Sikkim

(c)Kerala (d)Manipur

82.The rate at which banks led to RBI is known as

(a)Repo rate (b)Reverse repo rate

(c)Bank rate (d)Interest rate

83.Which states of Indi have derived maximum benefits from green revolution?

(a) Punjab, Haryana and U.P (b)Bihar, West Bengal and Assam

(c)Rajasthan, Gujarat and Maharashtra (d)Tamil Nadu, Andhra Pradesh and Kerala

84.The term “Green Revolution” was given by

(a)Dr.Norman Borlaug (b)Dr.M.S Swaminathan

(c) Dr.William Gande (d)Sada shiv Rao

85.The philosophy of Laissez faire is identified with

(a)Welfare state (b)Socialist state

(c)Gandhian state (d)Industrial state

86. The concept of “Meeting the needs of present without compromising the ability of future

generation to meet their needs” , is generally known as the concept of--------------

(a)Climate migration (b)Sustainable development

(c)Structural development (d)Inclusive growth

87.Which of the following is the full form of the ‘BRA’ as used in banking field?

(a)Banking Regulation Act (b)Banking Restructuring Act

(c)Borrowing Risk Assessment (d)Brazilian and Russian Association

88.The Government of India has authorized which of the following organizations to raise Rs.

10,000

crore to refinance those banks who are lending money for infrastructural projects?

(a)IIFCIL (b)SIDBI

(c)IDBI Bank (d)LIC

89.As we all know India’s one of the major imports is oil and petroleum. Out of the total

consumption of

the oil and petroleum, how much is consumed by the transport sector ? About------------

( a)40% (b)30%

(c)60% (d)50%

90.The basic objective of business is to----------------------------

(a)Create a customer (b)Earn profit

(c)Satisfy the needs of the society (d)Selling of goods

91.An economic objective of business is------------------

(a)Welfare of employees (b)Generation of employment

(c)Innovation (d)Community services

92.Which of the following is not an economic objective of business.

(a)Earning profit (b)Market standing

(c)Innovation (d) Generation of employment

93.Professionals charge ------------------for their services.

(a)salary (b)wage

(c)commission (d)Fee

94.Which of the following is the name of the organization, created to provide full employment and

self- reliance to the women folk in India?

(a)OECD (b)ROSCA

(C)SEWA (d)USO

95.Specially Developed Economic Zones(SEZs) in India where some of the economic laws and

restrictions

of the land are relaxed with the purpose of giving incentives to investors are commonly known

as:-

(a)Preferential Zones (b)Economic corridors

(c)Industrial park (d)Special Economic Zones

96.Stock market indexes traditionally served as a benchmark to measure the performance of which

of

the following types of portfolios of the investors/promoters?

(a)Equity portfolio (b)Tax saving instruments

(c)Mutual Funds (d)Investments in Government Securities

97.Foreign trade helps each country to make -------------use of its natural resources.

(a)Optimal (b)loss

(c)better (d)none of these

98.Traders have to face move difficulties in---------trade than---------trade

(a)foreign, home (b)home, foreign

(c)local, Indian (d) none of these

99. In which year was the EXIM Bank established?

(a)1982 (b)1983

(c)1984 (d)1985

100.An agreement which in fact is a contract between the RBI and Banks for the sale and

repurchase of

Government securities and short term treasury bills at a future date and for which the RBI

indicates

the interest rate, is generally known as-------------------------

(a)Repo rate (b)Reverse repo rate

(c)Bank rate (d)Prime Lending Rate

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